Liverpool

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TOP TOWNS RANKING 15

Key Facts

Total floorspace: 1.3 million sq ft (120,920 sq m)

Missing retailers in central Liverpool: La Senza, Tie Rack, Republic, The Pier, USC, Debenhams, Office, Primark, Shoe Zone, Jaeger, Pumpkin Patch

Top five under-sized retailers in central Liverpool: John Lewis (-61,077 sq ft), Marks & Spencer (-36, 127 sq ft), H&M (-12,432 sq ft), Sainsbury’s Local (-9,833 sq ft), Woolworths (9,588 sq ft)

Top centres that share the central Liverpool total catchment: Birkenhead (10 per cent), New Mersey Retail Park (5 per cent), St Helens (5 per cent), Warrington (4 per cent), Gemini Retail Park (4 per cent)

Area of highest rental growth over the past five years: Church Street (5.2 per cent)

Rental growth over the past five years: 3.3 per cent

Latest deals: Flannels and Clinton Cards have both snapped up units at Liverpool One

New developments: Liverpool One will create 1.7 million sq ft (153,285 sq m) of retail space and is due to launch in June next year. Speke District Centre, at 140,845 sq ft (13,085 sq m), is also under construction, while Liverpool Waters, coming in at 800,000 sq ft (74,320 sq m), is not due to be completed for another 10 years. Lastly, Project Jennifer will provide 195,000 (18,115 sq m) and is set for completion in July 2012

Source: Experian/rental data from Churston Heard

Liverpool being crowned European Capital of Culture next year will coincide with the opening of Grosvenor’s massive Liverpool One development.

The£900 million uncovered scheme will include 1.6 million sq ft (148,640 sq m) of retail space, a 14-screen cinema, 230,000 sq ft (21,365 sq m) of restaurants, cafés and bars and a five-acre car park. Its opening could effect a sea change in local shopping habits, enabling the city to compete with nearby retail temptations in Manchester, such as the Trafford Centre, and claw back some of its local WAG spend. Traditionally, Liverpool has been severely under-shopped.

The development is split into six zones serving different types of retailers. John Lewis will join popular high street chains including New Look, American Apparel, USC, Virgin Megastores and JD/Nike on Paradise Street. Debenhams will sit in the family and leisure zone alongside Sports Direct, Barratts and H Samuel. John Lewis and Debenhams are understood to be ahead of schedule and both are fitting out already.

Other signings include Apple, Game, Esprit, Reiss and Ted Baker, as well as stalwarts Carphone Warehouse, Clinton Cards and Oasis. Hamleys, London’s iconic toy store, is also believed to be considering Liverpool One as a home for its first 20,000 sq ft (1,858 sq m) location outside the capital. Topshop and Topman have signed a 65,000 sq ft (6,039 sq m) unit – one of its largest outside of London – on the corner of Church Street and Peter’s Lane.

Liverpool’s other major retail development, Metquarter, opened last year and has helped to fuel retailer interest in the city. It targets designer and premium retailers and features Flannels, Armani Exchange, Hugo Boss, All Saints, Hobbs and Whistles as tenants. Diesel joined the fray last September and surf brand Billabong and womenswear chain Phase Eight have also signed sites.

Cheetham & Mortimer retail commercial agent Conor Mulloy says Metquarter is Liverpool’s answer to Manchester’s King Street. “It has attracted new, quality retailers to Liverpool and its success has helped enhance the profile of the city as a retail destination. This will be further enhanced with the opening of Liverpool One,” he says.

There is likely to be some fallout in Church Street when Liverpool One opens. Some retailers are relocating to the new development, but several plan to remain in their existing units on Church Street.

“Church Street will remain the prime retailing location in the city, but with Debenhams and John Lewis anchoring Liverpool One, this will extend the prime retail pitch further,” says Mulloy.

It is also possible that prime pitches in Bold Street and Lord Street may contract.

Mulloy says the St Johns centre, which is adjacent to the Liverpool One scheme, will need updating if it is to keep pace with Liverpool One and Metquarter. The St Johns centre houses mainly value retailers, including Wilkinson, 99p Stores, Argos, Select and MK One, but also hosts some middle-market fashion retailers, such as Evans, JD and Adams.

Experian director of property consultancy Jonathan De Mello agrees. “Liverpool One will be dominant – it’s huge. Clayton Square and St John’s will suffer,” he says.

Prime rents in the city are between£310 and£320.